Additional debt: An economist warns of the repercussions of borrowing from the International Monetary Fund.
Additional debt: An economist warns of the repercussions of borrowing from the International Monetary Fund.
10-17-2026
Information/Baghdad…
On Saturday, economic expert Saleh al-Khafaji outlined the potential negative effects of borrowing from the International Monetary Fund (IMF) on the Iraqi economy. He called on the government to be transparent with the public regarding the existence of any borrowing efforts, the amount of funds required, and the economic repercussions. Speaking to Al-Maalouma, al-Khafaji explained that “the IMF has revealed the Iraqi government’s intention to borrow, which contradicts Prime Minister Ali al-Zubaidi’s statement a few days ago that his government had no intention of borrowing and burdening the treasury with further debt.”
He pointed out that “borrowing from the IMF could have negative consequences due to the interest rates, conditions, and binding decisions that could directly impact government spending.” He noted that such loans could increase the external debt and exacerbate the financial burdens on the general budget.
Al-Khafaji stressed the need for a clear and transparent government statement to the public regarding the existence of any borrowing efforts from the IMF, the amount of funds that might be borrowed, and the implications for the Iraqi economy.
The economist questioned the wisdom of raising the dollar exchange rate if there were efforts to borrow from the International Monetary Fund, warning that the accumulation of external debt could impose additional burdens on the Iraqi budget and economy.
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